The Bi-Weekly Mortgage Program

The Bi-Weekly Mortgage Program is an accelerated home loan program that will enable a thirty year home loan to be liquidated in as little as 23 years.

The program is normally set by the mortgage lender or a third party agency in which an electronic funds transfer is made from the borrowers banking account every two weeks in the amount of half of the monthly mortgage payment amount that's due.

In more simple terms, the borrower makes payment for thirteen months instead of twelve.

The Bi-Weekly Mortgage Program is set up so that the extra principle payments that it collects are accumulated in the escrow account and applied to the principle at the years end. It is not certain who benefits from the interest that is accrued on these monies while they are sitting in the escrow account.

This program is an excellent choice for someone who wants to pay off his/her mortgage earlier than thirty years but does not want to be hassled by attempting to manage a self implemented accelerated program. Basically, the payments are automatically withdrawn every couple of weeks so there's no late payments and confusion to the borrower.

You may also want to consider trying to execute a bi-weekly mortgage loan program on your own. This is where the borrower implements the above plan without formally doing so through the lender or third party agency. Just be sure that the additional money is taken off of the principal.

This is more flexible because you can adjust the additional amount every month depending on your finances for that month. It's also beneficial because you avoid the extra fees associated with bi-weekly mortgage programs.

On the other hand, the bi-weekly mortgage program through a lender or agency might be more effective in the long run because you aren't able to be tempted not to pay the extra payments because they are automatically deducted.